Solar and thermal hydro storage solutions company RayGen has successfully closed one of the largest renewable energy capital raises in Australian history, securing $127 million in a Series D led by oil and gas industry technology company SLB.
SLB had already announced its $31 million support for the raise in April 2024 along with a further $20 million coming from Breakthrough Victoria, but since then a further $76 million has been raised from new and existing backers.
SLB, formerly known as Schlumberger, attracted fellow Texan investors Quanta Services and Oxy Technology Ventures to the round, as well as existing investors Equinor Ventures, AGL Energy (ASX: AGL) and Photon Energy Group.
The Australian Renewable Energy Agency (ARENA) continued its vital support with an additional $17 million boost to the $10 million funding agreement announced last year.
Founded in 2010, RayGen developed a solar-and-storage solution that addresses a growing need for long duration energy storage, aimed at balancing intermittent wind and solar power in global energy systems as fossil fuel generators are decommissioned.
Its system uses mirrors to concentrate sunlight onto Australian-made, highly efficient solar modules. In addition to producing electricity, heat is captured from the modules and stored in water reservoirs for on-demand electricity dispatch via a synchronous engine.
The company’s flagship asset at Carwarp, Victoria, is one of the world’s largest operating next-generation long duration energy storage projects and is under an offtake agreement with AGL.
RayGen CEO Richard Payne says his team is invigorated by the industry-wide support in this latest investment round.
“This new funding round validates our vision, empowers us to accelerate our growth and is recognition of the outstanding effort and dedication of the RayGen team,” Payne says.
“Beyond their funding commitments, the calibre of our strategic investors places RayGen in an unrivalled position as we continue to drive local and international technology deployments."
He says the funding allows RayGen to continue to play an important role in Australia’s energy transition, and pioneer innovation to help achieve its climate goals.
"This is already an Australian success story; our mission now is to deploy this technology to the world," he says.
In addition to the raise, RayGen and SLB have executed a strategic deployment agreement (SDA) designed to accelerate the technology’s path to the global energy market.
"We believe RayGen’s next-generation solar thermal hydro energy storage technology can provide clean and flexible energy to address the intermittency challenge of renewable energy," says SLB vice president, renewables & energy efficiency, Irlan Amir.
"We look forward to deploying their solutions on a global scale."
ARENA CEO Darren Miller says the raise is a testament to a decade of innovation, collaboration and hard work by RayGen.
"RayGen’s journey to enhance the efficiency and sustainability of renewable energy has provided valuable insights into the practical applications of innovative energy solutions and is a true testament to Australian ingenuity," Miller says.
"RayGen’s technology represents a significant advancement in renewable energy solutions. Its work in solar-and-storage will have a substantial impact on the global energy landscape and ARENA is proud to have been there almost every step of the way."
AGL chief operating officer Markus Brokhof says his company has long been early supporter and adopter of innovative energy solutions like RayGen’s, with the belief that "this technology has the potential to be deployed at greater scale and could be one solution to the challenge of long duration energy storage".
"This investment builds on AGL’s existing relationship with RayGen which includes an offtake agreement for production from RayGen’s Carwarp Power Plant," he says.
"Electricity generated and stored at Carwarp is already being supplied to AGL customers."
The additional investment comes as RayGen’s modular, integrated design for high-tech solar and thermal hydro storage is being considered for multi-GWh projects.
Partnering with Photon Energy Group, a development application has been submitted for a 150MW project at Yadnarie, on South Australia’s Eyre Peninsula. Photon Energy has also announced the development of a 250MW RayGen project in South Africa.
Last year, the company opened Australia’s largest renewable energy manufacturing facility, a 170MW per annum solar module production line in Melbourne.
"This investment aligns with our mission to back world-class Victorian innovation that delivers economic and environmental benefits. With its strong manufacturing base and ambitious growth plans, RayGen is well-positioned to drive Australia’s renewable energy future while making a global impact," says Breakthrough Victoria CEO Rod Bristow.
"RayGen’s innovative technology is set to play a key role in strengthening grid resilience and driving the energy transition forward, and we look forward to seeing its growing impact," says Equinor Ventures head Katherine Peachey.
"We are proud of our engagement with RayGen and are determined to support the global deployment of the company’s technology through our project development activities in Australia, South Africa and beyond," adds Photon Energy Group CEO Georg Hotar.
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